By Brandon Smith, Associate Editor
At Oath Keepers we have been discussing for years the probability that an economic collapse would take place in the near term, and that this economic collapse would open doors for the establishment to assert authoritarian measures supplanting the civil liberties outlined in the Constitution. A major part of our concern revolved around efforts by China, the largest foreign holder of U.S. debt and currency reserves, to quietly decouple from the American consumer and economy. My personal hypothesis held that the U.S. government would take one of two destructive paths:
A) They would continue ineffective stimulus measures to artificially prop up the economy until foreign creditors (mainly China) grew weary of having their investments devalued through inflation. China would then dump its dollar investments and demand that a new world reserve currency be launched to replace the greenback.
B) They would cut stimulus measures or refuse to raise the debt ceiling, resulting in a default scenario. This would also cause China to dump treasuries and the dollar as the world reserve currency.
You can read some examples of my analysis over the years of the Chinese trigger point:
Though we would be more than happy to discover ourselves wrong on China, this has not been the case so far. In the midst of a government shutdown that almost no one thought would happen, and a debt ceiling debate which almost no one thinks will end in default, China has now openly announced its intentions through its state run media outlet Xinhua their desire to end the U.S. dollar’s dominance as the world reserve currency, and build a “New World Order”. The following is a transcript of the Xinhua article:
U.S. fiscal failure warrants a de-Americanized world
“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.
Emerging from the bloodshed of the Second World War as the world’s most powerful nation, the United States has since then been trying to build a global empire by imposing a postwar world order, fueling recovery in Europe, and encouraging regime-change in nations that it deems hardly Washington-friendly.
With its seemingly unrivaled economic and military might, the United States has declared that it has vital national interests to protect in nearly every corner of the globe, and been habituated to meddling in the business of other countries and regions far away from its shores.
Meanwhile, the U.S. government has gone to all lengths to appear before the world as the one that claims the moral high ground, yet covertly doing things that are as audacious as torturing prisoners of war, slaying civilians in drone attacks, and spying on world leaders.
Under what is known as the Pax-Americana, we fail to see a world where the United States is helping to defuse violence and conflicts, reduce poor and displaced population, and bring about real, lasting peace.
Moreover, instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies.
As a result, the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites, while bombings and killings have become virtually daily routines in Iraq years after Washington claimed it has liberated its people from tyrannical rule.
Most recently, the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonized.
Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.
To that end, several corner stones should be laid to underpin a de-Americanized world.
For starters, all nations need to hew to the basic principles of the international law, including respect for sovereignty, and keeping hands off domestic affairs of others.
Furthermore, the authority of the United Nations in handling global hotspot issues has to be recognized. That means no one has the right to wage any form of military action against others without a UN mandate.
Apart from that, the world’s financial system also has to embrace some substantial reforms.
The developing and emerging market economies need to have more say in major international financial institutions including the World Bank and the International Monetary Fund, so that they could better reflect the transformations of the global economic and political landscape.
What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.
Of course, the purpose of promoting these changes is not to completely toss the United States aside, which is also impossible. Rather, it is to encourage Washington to play a much more constructive role in addressing global affairs.
Read original here.
And among all options, it is suggested that the beltway politicians first begin with ending the pernicious impasse…”